The Monetary Authority of Singapore (MAS) has allocated 100 million Singapore dollars ($74.36 million) to enhance its finance sector’s quantum computing and artificial intelligence capabilities.
The MAS, Singapore’s central bank and financial regulatory authority, has administered its most recent injection of funds to assist local financial institutions in establishing quantum computing infrastructure and accelerating AI development and adoption.
Singapore to establish itself as a fintech epicenter
To strengthen Singapore’s status as a fintech center, the MAS implemented the Financial Sector Technology and Innovation Scheme (FSTI 3.0) in 2022.
The regulator committed an additional $74.36 million on July 18, in addition to its initial commitment of 150 million Singapore dollars ($111.5 million) over three years.
For the development of quantum computing technology centers and viable institutional use cases, eligible financial institutions will receive up to 50% co-funding. Companies developing quantum-based cybersecurity solutions will be eligible for up to 30% co-funding.
Diverting a portion of the fund to establish AI innovation centers will enable developing, training, and deploying AI models for various applications. The regulator stated:
“There are strong prospects for the financial industry to apply AI to solve industry-wide problems beyond what each financial institution can do individually.”
Singapore’s AI pilot program to detect deception
According to MAS, scam and fraud detection use cases are the primary focus of the initial AI pilot initiative. The regulator will collaborate with public agencies, technology solution providers, and institutions in the AI pilot.
The FSTI scheme is applicable until March 2026. Nevertheless, the Singapore government may contemplate extending the program in light of its influence on the fintech sector of the island nation.
On July 2, the MAS granted complete regulatory approval to the Singapore wing of Paxos, the gold-backed stablecoin issuer of Pax Gold (PAXG). This news is relevant.
The regulatory sanction will allow Paxos to introduce a stablecoin that is consistent with the forthcoming regulatory framework of MAS.
Paxos’ primary banking associate will be the Development Bank of Singapore (DBS), the largest bank in Southeast Asia by assets under management.
As stated in the announcement, DBS will be accountable for the custody of the Paxos stablecoin reserves and cash administration.
